RebuildSoCal Partnership Opposes Property Tax Initiative
RebuildSoCal Partnership encourages Californians to vote “no” on Proposition 15, the Tax on Commercial and Industrial Properties for Education and Local Government Funding Initiative, which is on the Nov. 3 ballot as an initiated constitutional amendment.
Arguably the most significant state measure up for a vote, this initiative attracted 1.7 million signatures, a number organizers have called “record-breaking.” With it, voters are being asked to partially repeal Proposition 13 and amend the state constitution.
A “no” vote on Prop 15 opposes the constitutional amendment, thus continuing to tax commercial and industrial properties based on a property’s purchase price, with annual increases equal to the rate of inflation (or 2 percent), whichever is lower.
What is Prop 15?
As it is written, Prop 15 does not state that the measure is a massive tax increase. Instead, the title emphasizes “Funding for Schools and Community Services.” Backers of this measure want voters to believe schools will close, senior citizens will be hurt by budget cuts, and only the rich will have to pay for the tax increases.
Supporters admit they also want to repeal Prop 13 and increase residential property taxes, which would then impact small businesses, homeowners and working families. Proposition 15 would define small businesses as those that are independently owned and operated and have 50 or fewer employees.
What is Prop 13?
Back in 1978, California voters passed Proposition 13 in a landslide. At the time, homeowners were angry about soaring property taxes. Prop 13 limited property taxes to 1% of assessed value, capping increases in assessed value to at most 2% per year, and set assessed value at the 1976 value, only to be reset when the property is sold.
Why vote ‘No’?
Prop 15 will adjust the formulas used by tax assessors. While the measure does not directly affect homeowners, businesses with under $3 million in California property, or farmland, if Proposition 15 passes it will raise taxes on business property. Those costs would be passed to tenants, leading to higher rents for small businesses. Ultimately, Prop 15 will impact customers and drive up the cost of living.
In these unprecedented times, Californians are already struggling financially. Prop 15 would increase the cost of living and impose a $12-14 billion per year tax hike. In 2020, as we face one of the toughest economies of our lifetime, every penny counts. RebuildSoCal Partnership opposes Prop 15 and encourages you to vote “NO.”